Question: You are provided some data about the market: The expected return of the market portfolio is 10.51%, the market's volatility is 16.2%, and the risk-free

You are provided some data about the market: The expected return of the market portfolio is 10.51%, the market's volatility is 16.2%, and the risk-free rate is 1.3%. If the beta of ROKU is 1.21, according to the CAPM, what is the expected return of ROKU? (Give your answer as a percentage with 2 decimals, e.g., if the answer is 0.0345224 (or 3.45224%). enter 3.45 as your answer.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

You are provided some data about the market: The expected return of the market portfolio is 10.8%, the market's volatility is 13.4%, and the risk-free rate is 1.9%. If the beta of LEVI is 1.56,...

You are provided some data about the market: The expected return of the market portfolio is 12.13%, the market's volatility is 24.3%, and the risk-free rate is 2.3%. If the beta of ROKU is 1.3,...

You are provided some data about the market: The expected return of the market portfolio is 11.19%, the market's volatility is 20.3%, and the risk-free rate is 1.3%. If the beta of ROKU is 1.11,...

The beta of JNJ is 0.70, while the beta of ROKU is 1.12. If you create a complete portfolio with 34.6% invested in JNJ. What will be the beta of the complete portfolio? You are provided some data...

You are provided some data about the market: The expected return of the market portfolio is 12.8%, the market's volatility is 16.4%, and the risk-free rate is 1.6%. If the beta of LEVI is 1.14,...

You are provided some data about the market: The expected return of the market portfolio is 12.5%, the market's volatility is 19.9%, and the risk-free rate is 1.5%. If the beta of LEVI is 1.16,...

You are provided some data about the market: The expected return of the market portfolio is 12.6%, the market's volatility is 18.3%, and the risk-free rate is 1.4%. If the beta of LEVI is 1.11,...

You are provided some data about the market: The expected return of the market portfolio is 12.9%, the market's volatility is 19.2%, and the risk-free rate is 1.1%. If the beta of LEVI is 1.2,...

You are provided some data about the market: The expected return of the market portfolio is 11.63%, the market's volatility is 22.8%, and the risk-free rate is 2.2%. If the beta of ROKU is 1.14,...

You are provided some data about the market: The expected return of the market portfolio is 11.8%, the market's volatility is 13.9%, and the risk-free rate is 2.9%. If the beta of Johnson & Johnson...

A ladies' clothing store chain reports an average sales increase of 7% over last year's sales for all stores nationwide, with a standard deviation of 2%. A district store manager pulls the shopping...

On January 1, 2011, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2011, 2012, and 2013. The...

A credit card company is offering a cash back option to customers with certain spending habits. Customers' spending habits are generally grouped into the following four categories: travel, household,...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...